Ukrnafta fell short of UAH 6.6 billion due to failed trades

Укрнафта недополучила 6,6 млрд грн из-за провалившихся торгов

The auction for the sale of oil and gas condensate Ukrnafta, the Ukrainian energy exchange had failed – the company has not received any application for the purchase. As a result, it lost about UAH 6.6 billion net income. This was reported by representatives of the oil company on the official website.

The failure of the auction is not possible to realize at the auction products in the total volume of about 500 thousand tons, including production for November and December. This equates to a production volume in 4 months. “Ukrnafta” was put up for sale 85 of the positions of the volume from 17 to 9 thousand tons.

Although the “Ukrnafta” for the second year in a row stabilized and increased the volume of hydrocarbon production, sales of oil still exist. The company attributed the failure of the auction with the established authorities restrictions. In 2019 9 of 16 exchange auction “Ukrnafta” has not taken place.

Under the law, the company is obliged to sell the products for a starting price, which sets the state of the auction Committee. As noted, the formula for calculating starting prices tie them to the level of import parity, which they can substantially exceed the prices at which have the ability to import raw materials or buy it on the domestic market of Ukrainian enterprises processing oil.

The company has repeatedly appealed on this issue to the Cabinet, however, the situation has not changed for the better.

The representatives of “Ukrnafta” note that restrictions on the sale of raw materials negatively affect the financial results of the company in the implementation of the investment program.

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